The Minneapolis school district says it’s laying off 400 full-time employees, including approximately 116 teachers, as it deals with a $75 million shortfall.

In a statement on Friday, Minneapolis Public Schools said most reductions made were from “central office or departments,” and that it’s still going through data from the 2025-2026 budget, which was approved on Tuesday.

The district cited increasing costs in utilities, salaries, benefits and transportation, and a decline in state funding as reasons for the deficit. 

Minneapolis voters passed a $20 million technology levy in the November 2024 election to address the shortfall. The impact on Minneapolis homeowners is around $2 per month for someone with a $100,000 house.

The approved budget did not “completely” eliminate any student programs, and prioritized low class sizes, according to the district. 

WCCO has reached out to the Minneapolis Federation of Educators, the union representing teachers in the district, for comment.

St. Paul Schools facing $51.5 million shortfall; considering referendum

St. Paul Public Schools, which also approved its budget on Tuesday, said it’s facing a $51.5 million deficit.

The district says it plans to use $35.5 million in reserve funds and a combination of “budget cuts and new revenue” to cover the other $15.6 million.

A spokesperson with the district on Friday night said that more than 143 positions have been cut, including 77 from the teachers’ bargaining group. That includes counselors, social workers, nurses or any licensed positions that are part of the teachers’ union. 

Superintendent Dr. Stacie Stanley said in a written statement that using money from the reserve fund is a one-year solution, and that the district is considering a referendum for St. Paul residents to vote on in November.